KEYCORP /NEW/

As shown in Figure 4, noninterest income was $723 million for the first quarter of 2026, compared to $668 million for the year-ago quarter.

The following discussion explains the composition of certain elements of our noninterest income and the factors that caused those elements to change.

Figure 4. Noninterest Income

Trust and investment services income

Trust and investment services income consists of brokerage commissions, trust and asset management fees, and insurance income. The assets under management or administration that primarily generate certain trust and asset management fees are shown in Figure 5. For the three months ended March 31, 2026, trust and investment services income was up $18 million, or 12.9%, compared to the same period one year ago. This was primarily due to an increase in investment management income and other fees associated with higher assets under management.

A significant portion of our trust and investment services income depends on the value and mix of assets under management. As shown in Figure 5, at March 31, 2026, our bank, trust, and registered investment advisory subsidiaries had assets under management of $69.8 billion, up 14.3% compared to March 31, 2025. The increase was driven by continued net positive cash in-flows and market impacts on portfolios.

Figure 5. Assets Under Management or Administration

Investment banking and debt placement fees

Investment banking and debt placement fees consist of syndication fees, debt and equity securities underwriting fees, merger and acquisition and financial advisory fees, gains on sales of commercial mortgages, and agency origination fees. For the three months ended March 31, 2026, investment banking and debt placement fees were up $22 million, or 12.6%, compared to the same period a year ago. The increase reflects higher investment banking fees and related activity in our mergers and acquisitions and equity new issue underwriting businesses.

Cards and payments income

Cards and payments income, which consists of debit card, prepaid card, consumer and commercial credit card, and merchant services income, increased $4 million or 4.9% for the three months ended March 31, 2026, compared to the same period one year ago. The increase was primarily a result of higher merchant services income and higher credit card spend volume slightly offset by higher credit card reward costs.

Service charges on deposit accounts

Service charges on deposit accounts increased $8 million, or 11.6%, for the three months ended March 31, 2026, compared to the same period one year ago. The increase was driven by account analysis fees.

Other noninterest income

Other noninterest income includes operating lease income and other leasing gains, corporate services income,

corporate-owned life insurance income, consumer mortgage income, commercial mortgage servicing fees, net securities gains(losses), and other income. Net other noninterest income for the three months ended March 31, 2026, increased $3 million, or 1.5%, from the year-ago quarter. This net change resulted from higher corporate services income reflective of growth in loan commitment fees, foreign exchange trading gains, and non-yield loan fees, coupled with higher other noninterest income from increases in deposit network fees and lower realized losses on non-customer derivatives activity. Offsetting this net increase were lower commercial mortgage servicing fees reflective of lower special servicing and other miscellaneous ancillary fees.